Categories
Exclusive Interviews Precious Metals Rover Metals

Rover Metals Corporate Webinar Recording

Rover Metals Corp.

VANCOUVER, British Columbia, May 16, 2022 (GLOBE NEWSWIRE) — Rover Metals Corp. (TSXV: ROVR) (OTCQB: ROVMF) (FSE:4XO) (“Rover” or the “Company”) is pleased to provide a recording of the Company’s CEO, Judson Culter, presenting Rover’s high-grade gold exploration story in northern Canada, including an overview of current operations and upcoming milestones, while sharing the most recent Investor Presentation. We invite all investors and other interested parties to watch the recorded webinar at the link below. The discussion also includes Rover’s plans for gold exploration at its new project in the Battle Mountain gold district of Nevada.

Recorded Webinarhttps://www.youtube.com/watch?v=eXEpbUBOYSQ

About Rover Metals
Rover is a precious metals exploration company specialized in North American (Canada and U.S.) precious metal resources, which is currently advancing the gold potential of its existing projects in the Northwest Territories of Canada (60th parallel), and north-central Nevada, USA. The Company owns five gold projects. Phase 3 Exploration at its Cabin Gold Project, 60th Parallel, NT, Canada, commenced in March 2022 and continues through to the date of this release. Phase 1 Exploration at its Tobin Gold Project commenced in May 2022 and continues through to the date of this release. Lastly, the Company, is also awaiting news from the Phase 2 Exploration Program at its Up Town Gold Project, in the Northwest Territories of Canada (60th parallel).

You can follow Rover on its social media channels:
Twitter: https://twitter.com/rovermetals
LinkedIn: https://www.linkedin.com/company/rover-metals/
Facebook: https://www.facebook.com/RoverMetals/
for daily company updates and industry news, and
YouTube: https://www.youtube.com/channel/UCJsHsfag1GFyp4aLW5Ye-YQ?view_as=subscriber
for corporate videos.
Website: https://www.rovermetals.com/

ON BEHALF OF THE BOARD OF DIRECTORS
“Judson Culter”
Chief Executive Officer and Director

For further information, please contact:
Email: info@rovermetals.com
Phone: +1 (778) 754-2617

Statement Regarding Forward-Looking Information
This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Rover’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. There can be no assurance that such statements prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Rover’s expectations. Rover undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

Categories
Energy Exclusive Interviews Junior Mining Precious Metals Silver Hammer

Silver Hammer – Reports High-Grade Silver And Copper Samples

Silver Hammer Mining, Proven and Probable

Silver Hammer Mining | CSE: HAMR | OTCQX: HAMRF)
Website: https://silverhammermining.com/
Silver Strand: https://silverhammermining.com/silver-strand/
Corporate Presentation: https://silverhammermining.com/wp-content/uploads/2021/09/Silver-Hammer-Mining-Investor-Presentation-Fall-2021-Oc.pdfPresentation-August-2021-FINAL-.pdf
Twitter: https://twitter.com/silverhmr
Contact: 604.908.1695

Categories
Exclusive Interviews Junior Mining Precious Metals Providence Gold

Provenance Gold has 2 Gold Projects that Offer a Tremendous Opportunity for Savvy Gold Investors

Website: https://www.provenancegold.com/
CSE: PAU | OTCQB: PVGDF

Provenance Gold Corp. is a precious metals exploration company with a focus on gold and silver resources within North America. The Company currently holds interests in three properties in Nevada, and one in eastern Oregon, USA. These properties include the 5,160 acre White Rock property situated in Elko County within the Delano Mining District, the 540 acre Mineral Hill property situated in Eureka County and the 2,024 acre Silver Bow property situated in Nye County in addition to the Eldorado property located in eastern Oregon.

WHITE ROCK The White Rock project spans 5,160 acres and covers an extensive gold system, the core of which hosts gold mineralization that extends across an area at least 3.2 Km by 1.6Km. Provenance believes the geology of the White Rock mineral system is similar to the geology of the nearby Black Pine mineral system in southern Idaho. At Black Pine, the gold system is hosted in a complex of thrust faults. Provenance believes a similar thrust complex underlies the White Rock mineralization, and the postulated thrust complex will be a future exploration target.

ELDORADO The Eldorado property will receive early focus in 2022 as historic data suggests it could hold up-to-a multimillion-ounce gold resource. The company is currently in an early stage of data acquisition, verification and compliance that will result in the completion of a National Instrument 43-101 resource technical report.

Corporate Office
Provenance Gold Corp.
2200 – 885 W Georgia St.
Vancouver, BC, V6C 3E8
+1-250-516-2455
email@provenancegold.com

Website| www.provenandprobable.com
Call me directly at 855.505.1900 or email: Maurice@MilesFranklin.com
Precious Metals FAQ – https://www.milesfranklin.com/faq-maurice/

Proven and Probable
Where we deliver Mining Insights & Bullion Sales. I’m a licensed broker for Miles Franklin Precious Metals Investments (https://www.milesfranklin.com/contact/) Where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories, and precious metals IRA’s. Call me directly at (855) 505-1900 or you may email maurice@milesfranklin.com.

Proven and Probable provides insights on mining companies, junior miners, gold mining stocks, uranium, silver, platinum, zinc & copper mining stocks, silver and gold bullion in Canada, the US, Australia, and beyond.

Categories
Exclusive Interviews Junior Mining Precious Metals Roo Gold

RooGold – Positioned to Be The Next Dominant Player in the New South Whales

RooGold (CSE: ROO | OTC: JNCCF)
https://roogoldinc.com/
info@roogoldinc.com
416-910-1440

10 HIGH-VALUE GOLD PROJECTS: Ten properties cover a total of 1091 km² and 106 historic gold mines and prospects within the highly mineralized but relatively under explored New England Orogenic Terrane and prolifically mineralized Lachlan Orogenic Belt. Mineralizaton is mostly of an orogenic type associated with large scale structures making for large attractive targets and lesser intrusion related types. Potential for listwanite hosted gold mineralization of the Bralorne and Motherlode type along the Peel-Manning suture zone.

4 HIGH-VALUE SILVER PROJECTS: Four properties cover a total of 289 km² and 31 historic gold-silver mines and prospects within the prolifically mineralized but relatively under explored New England Orogenic Terrane. All properties remain largely under explored since their discovery in the early 1900’s. Little to no historic drilling and almost no exploration Several styles of mineralization present including intrusion related vein stock work targets and low sulphidation epithermal types.

VIDEO
MP3

Website| www.provenandprobable.com

Call me directly at 855.505.1900 or email: Maurice@MilesFranklin.com

Precious Metals FAQ – https://www.milesfranklin.com/faq-maurice/

Proven and Probable Where we deliver Mining Insights & Bullion Sales. I’m a licensed broker for Miles Franklin Precious Metals Investments (https://www.milesfranklin.com/contact/) Where we provide unlimited options to expand your precious metals portfolio, from physical delivery, offshore depositories, and precious metals IRA’s. Call me directly at (855) 505-1900 or you may email maurice@milesfranklin.com. Proven and Probable provides insights on mining companies, junior miners, gold mining stocks, uranium, silver, platinum, zinc & copper mining stocks, silver and gold bullion in Canada, the US, Australia, and beyond.

Categories
Exclusive Interviews Junior Mining Labrador Gold

Labrador Gold – Discovers 54.17 GPT at Big Vein on Kingsway Gold Project

Labrador Gold: https://labradorgold.com/

Ticker: TSX.V: LAB | OTCQX: NKOSF

Corporate Presentation: https://labradorgold.com/investors/presentations/

Telephone: (416) 704-8291

Email: info@labradorgold.com

Labrador Gold Intersects 54.17 G/T Au Over 0.95m at the Big Vein Target

TORONTO, May 05, 2022 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce the continued extension of the Big Vein Zone to the southwest with an intersection of 54.17 g/t Au over 0.95m as well as the intersection of near surface gold mineralization from initial diamond drilling of the Pristine target at its 100% controlled Kingsway project near Gander, Newfoundland. These holes were drilled as part of the Company’s ongoing 100,000 metre drill program at Kingsway.

At Big Vein, the intercept of 54.17g/t Au over 0.95m in hole K-22-122 contains visible gold and is the furthest intersection of the Big Vein Zone to the southwest drilled to date. This extends the strike length of the zone to 320m and it remains open in this direction. Hole K-22-116 targeted the HTC zone and intersected 14.67 g/t over a 1m interval that also contained visible gold.

At the Pristine target the first six holes all intersected significant near surface gold mineralization, including hole K-21-109 that assayed 3.55 g/t Au over 2.33m from 17.15m that contained visible gold and hole K-21-100 that intersected 3.89 g/t Au over 3m from 53m downhole.

The initial assays from the Pristine target, located approximately 800m northeast of Big Vein along the Appleton Fault Zone, are very similar to the first reported holes from Big Vein that assayed 1.11 g/t Au over 5.50m, 5.0 g/t Au over 0.9m and 2.26 g/t Au over 7.0m in Hole K-21-01 and 1.72 g/t Au over 3.0min Hole K-21-02 (see news release dated May 10, 2021).

The stratigraphy encountered is also very similar to Big Vein, with the mineralized Doyle Zone defined by a network of shear veining that is associated with a highly fractured sandstone in fault contact with a deformed black graphitic shale.

“We are very pleased with the initial results from the Pristine target which proves our interpretation of the existence of a gold occurrence not too far up ice from the pristine gold grains found in till. Pristine is the third of three targets tested to date to show significant near surface gold assays, a result of our systematic exploration strategy at Kingsway and the prospectivity of the Appleton Fault Zone,” said Roger Moss, President and CEO of the LabGold. “We have named the mineralized zone at Pristine the Doyle Zone after our friend and strong supporter James Doyle, who passed away suddenly, and much too early, in late 2020. James helped and advised us in every financing since the start of Labrador Gold in 2017, and gave us support in the market, often when no-one else was interested. James would have loved witnessing all the exploration activity in central Newfoundland over the last two years and would have been working the telephones daily. We will endeavour to ensure that the Doyle Zone lives up to the big personality of its namesake.”

Pristine Target and Appleton Fault Zone

The visible gold found in hole K-21-109 drilled into the Doyle Zone is the third occurrence of visible gold found, after Big Vein and Golden Glove, along the Appleton Fault Zone. The Doyle Zone is the furthest northeast, approximately 4.5km from Golden Glove which lies close to the southern property boundary. The Doyle Zone lies to the east of a fault with a major damage zone approximately 30m wide which may represent the expression of the Appleton Fault Zone in this area. Further work is necessary to determine if this is, in fact, the the case or if it is a major splay of the Appleton Fault Zone. In either case it is a significant structure associated with gold mineralization in the Doyle Zone.

The most detailed exploration along the Appleton Fault Zone to date has been over an approximately 2km section from just southwest of Big Vein to the Pristine target, leaving the remaining 10km length of the fault zone relatively underexplored. This will be a major focus of LabGold’s upcoming field program.

Hole IDfrom (m)to (m)width (m)Au (g/t)Target
K-22-1429610043.44Big Vein
including979925.37
K-22-125707771.72HTC
K-22-12426426622.03Big Vein
28328417.68
K-22-12299114151.46Big Vein
123.33124.280.9554.17*
K-22-116178179114.67*HTC


19419624.18
20720813.25
K-22-143758271.53Pristine
K-22-123232411.98Pristine
434412.3
K-22-119313321.92Pristine
K-21-10917.1518.32.33.55*Pristine


47.4550.4531.31
54.4559.4551.48
K-21-107485241.16Pristine


868931.58
9610371.81
K-21-100535633.89Pristine

Table 1. Summary of Assay Results
* Interval contains visible gold. All intersections are downhole length
as there is insufficient Information to calculate true width.

Hole IDNorthingEastingElevation (m)AzimuthDipDepth (m)
K-22-143543603466180154.126045299.06
K-22-142543501566142636.815545167.00
K-22-125543528366160042.514050326.00
K-22-124543514366140550.214060494.00
K-22-123543610366180856.130045236.00
K-22-122543501666142636.914550228.63
K-22-119543610566180356.230045185.00
K-21-116543528066160042.314560236.00
K-21-109543605866178955.526060218.00
K-21-107543605866178955.629550209.00
K-21-100543619166185158.614045230.00

Table 2. Drill hole collar details

Figure 1. Doyle Zone plan map
https://www.globenewswire.com/NewsRoom/AttachmentNg/d658d985-d462-4293-a32f-4db3365c5d7d

Figure 2. Big Vein Plan Map.
https://www.globenewswire.com/NewsRoom/AttachmentNg/44a9f7c4-1910-4bea-99a8-e815f6ef56c2

QA/QC

True widths of the reported intersections have yet to be calculated. Assays are uncut. Samples of HQ split core are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routinely analyzed for gold by standard 30g fire assay with atomic absorption finish as well as by ICP-OES for an additional 34 elements. Samples containing visible gold are assayed by metallic screen/fire assay, as are any samples with fire assay results greater than 1g/t Au. The company submits blanks and certified reference standards at a rate of approximately 5% of the total samples in each batch.

Qualified Person

Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.

The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.

About Labrador Gold
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.

In early 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with gold occurrences in the region, including those of New Found Gold immediately to the south of Kingsway. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 50,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone following encouraging early results. The Company has approximately $28 million in working capital and is well funded to carry out the planned program.

The Hopedale property covers much of the Florence Lake greenstone belts that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt (see news release dated January 25 th 2018 for more details). Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.

The Company has 156,439,526 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.

For more information please contact:

Roger Moss, President and CEO      Tel: 416-704-8291

Or visit our website at: www.labradorgold.com

Twitter: @LabGoldCorp

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .

Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements .

Categories
Base Metals Emx Royalty Exclusive Interviews Junior Mining Precious Metals Project Generators Rhodium Investing

Probing Interview Digs in on Investment Guru Rick Rule & EMX Royalty CEO David Cole

Joining us for a conversation or legendary Rick Rule of Rule Investment Media and David Cole of EMX Royalty as will discover why mineral royalties are powerful financial instruments.

EMX Royalty (TSX.V: EMX | NYSE: EMX) Website: https://www.emxroyalty.com/

Corporate Presentation: https://www.emxroyalty.com/investors/presentations/

Mr. Scott S. Close Email: sclose@emxroyalty.com

Phone: +1 (303) 973-8585

About EMX Royalty: EMX Royalty Corporation has a long-standing track record of success in exploration discovery, royalty generation, royalty acquisition, and strategic investments. Our diversified, three-pronged business approach provides exposure to multiple upside opportunities while minimizing the impact on EMX’s treasury.

EMX’s business model is designed to efficiently manage the risks inherent to the minerals exploration and mining industry. Key elements and resulting advantages of our unique approach are: We organically generate royalties through low-cost property acquisition and early-stage exploration to build value, and then develop partnerships with quality companies to advance the projects, with EMX retaining a royalty interest and receiving pre-production payments. Our organic royalty growth is supplemented by purchases of royalties from other parties, as well as strategic investments. Cash flow from royalties, advance royalties, and other property payments are supplemented by returns from strategic investments and provide “self-funding” operating capital for our ongoing business initiatives. Using this model, we sustainably grow the royalty portfolio, with minimal dilution to our shareholders. EMX’s royalty and property portfolio spanning five continents and consists of a balanced mix of precious metal, base metal, and other assets.

Website| www.provenandprobable.com Call me directly at 855.505.1900 or email: Contact@ProvenandProbable.com

For Precious Metals Inquiries: Maurice@MilesFranklin.com Precious Metals FAQ – https://www.milesfranklin.com/faq-maurice/

REGISTER HERE FOR THE RULE INVESTMENT SYMPOSIUM:

https://opptravel.zohobackstage.com/TheRuleSymposiumofNaturalResourceInvesting#/?affl=MauriceJackson

Maurice Jackson:

Joining us for a conversation are two of the most prolific names in the natural resource space, both legends in their own right, as we are joined today with Rick Rule of Rule Investment Media and David Cole of EMX Royalty.

Maurice Jackson:

I must say it’s an absolute delight to be speaking with you both today, as I hold you both in the highest regard personally and professionally, as we plan to discover why mineral royalties are powerful financial instruments. We have a lot of ground to cover today, gentlemen, so let’s get to it.

Maurice Jackson:

Mr. Rule, you have a proven track record of nearly 50 years as a wealth builder for you and your clients through resource stocks. What are you seeing right now that gives you the courage and conviction that resource stocks may present a once in a lifetime opportunity?

Rick Rule:

First of all, you’re always not wise to contradict your host, but I’ve had a couple of these opportunities in my lifetime. So I don’t think it is a once in lifetime opportunity. But I, as you point out, have been lucky enough to see the opportunity before that’s in front of me now. And it was extremely pleasant to participate in. Natural resource bull markets are wonderful financial events if you participate in them early enough.

Rick Rule:

And my own belief, is that right now we are in the latter stage of the beginning of a precious metals bull market. And we’re probably in an earlier stage in a broader natural resource bull market. And the idea to participate in two real bull markets where the outcome is a probability, not a possibility, is extraordinary.

Rick Rule:

It is seldom before in my life have the fundamental factors that are in front of me come together simultaneously that has given me the courage of my convictions with regards to the probabilities of the outcome, is what I’m talking about. And that’s what feels good to me now.

Maurice Jackson:

Given the reasons you just convey to us, investors and speculators alike are seeking prudent ways to preserve their capital, and if possible, sweeten the deal with the delivery of some nice returns. About a decade ago, you introduced me a business model that offers investors both of these virtues, and I’m referring to the concept of mineral royalties. For someone new to the conversation, would you please share what are mineral royalties and why are mineral royalty companies a strategic part of your portfolio?

Rick Rule:

What I’ve learned over time is that having an economic interest in a revenue stream where my gross is my net is a very good thing. What a royalty is, is a part of the revenue stream of a mine or an oil well or something else. But you don’t bear any establishing capital risk, any sustaining capital risk or any operating cost risk.

Rick Rule:

So to the extent, as an example, that you disagree with a management team over some of their expenses, it doesn’t matter. You just get the check. Your gross is your net. A mineral royalty too is a timeless interest pretty much. And that means that most of the surprises that you can have are pleasant surprises.

Rick Rule:

If you are lucky enough to own a royalty on a tier one mineral discovery, my experience has always been that big discoveries yield surprises and small deposits yield surprises too. But big discoveries yield pleasant surprises, and small discoveries yield unpleasant surprises.

Rick Rule:

So a mineral royalty, which is established on a, let’s say, a 1 to 1.5 million ounce gold deposit, which feels attractive over 30 years might end up producing two, two and a half million dollars. The additional exploration expense that goes into establishing the lengthening of your royalty, the operating costs, the sustaining capital costs, the taxes, all that stuff doesn’t matter. Remember on a royalty for the most part, your gross is your net, which is very pleasant.

David Cole:

With regards to mineral royalties, what also comes to mind is the concept of optionality. Mineral royalties are phenomenal financial instruments, particularly in an inflationary environment, for the very reasons that you laid out and that discovery optionality and advancement of engineering techniques, all of which are multiplicative, make royalties fantastic instruments to hold.

Maurice Jackson:

And David, if you would expand on that word optionality, that may be a new term for readers.

David Cole:

Sure. So that’s the chance that things might go super well or super bad. And the couple of guys, Black Scholes got a Nobel prize for defining a formula, how to calculate what optionality is worth and options trade in the marketplace. And with respect to royalties, what we’re talking about is the chance that things can go well.

David Cole:

And as Rick pointed out, the cost that goes into the exploration and discovery work, development work, production work et cetera, et cetera, is born by the counterparty, not by the royalty holders. So we’re exposed to all that upside optionality. And that’s one of the things that makes a portfolio of royalty so powerful.

Maurice:

Mr. Cole, you’re the CEO of the royalty generator and I’m referring to EMX Royalty. Please introduce us to the value proposition that EMX Royalty presents for investors along with your current share price.

David Cole:

Well, I’m more than happy to talk about that. And first of all, it all revolves around this concept the royalties are fantastic instruments, and different royalty companies accumulate royalties in different ways. There’s royalty financings to advance mine projects. There’s purchasing of existing royalties. And then there’s royalty generation.

David Cole:

We love to generate royalties through the prospect generation business model, acquiring prospected mineral rights around the world, adding value by doing good geology and coalescing data, selling that onto an industry, hungry for discovery opportunity. And as Rick said, I’ve never seen an industry more hungry for discovery opportunity than we have today across the periodic table.

David Cole:

And we love doing that. We love selling them on for cash shares and of course, a royalty. We also buy royalties to augment that portfolio, to create that portfolio effect and to further advance the optionality.

Maurice Jackson:

And you do that organically. That’s what I find very intriguing about your business model.

David Cole:

That is our defining factor. That’s our hedgehog, and we’ve sold by example, Maurice, 83 projects in the last four years. We have track record of just selling projects right and left. And when I’m talking about selling projects, what I mean is we stake mining claims, or we acquire mining licenses from governments, add value, and then move them onto a counterparty, junior companies, and major companies.

David Cole:

And in the junior company deals, it’s commonly cash payments and share payments. We’ve done exceedingly well with the share payments over our nearly 20-year history and always a production royalty at the end. With major companies, which we also love to do business with, we’ve done six deals with Rio Tinto, the largest mining company in the world the last four years, as one example. And there, it’s more focused on the inground expenditures, cash payments, and of course the royalty at the back end.

David Cole:

And we’re just delighted to have the capital across our portfolio being expended by our counterparties, but also their expertise employed across that portfolio, which is enhancing this concept of discovery optionality, which is where the big win comes from. Of course, there’s commodity price optionality as well, which is a hot topic in an inflationary environment.

Maurice Jackson:

Now, before we delve into specific projects, multi-pronged question. Mr. Cole, how many projects are in the EMX property bank and how many of those projects are now in the harvest mode of generating royalties?

David Cole:

So when you use the word bank, that’s probably a good word to use. So we have approximately 300 mineral property positions globally, more than a dozen countries. We’ve always taken a broad approach. We’ve cast a broad net to find value, and that’s a very strong base of pyramid.

David Cole:

And then EMX does have half dozen producing assets or assets that are just about to become producing at the top of the pyramid. And we’re at the transitionary point where we’re going from a junior company that’s been building a portfolio of mineral property positions and royalties to one that has strong cash flow. And we’re right at that tipping point this year.

Maurice Jackson:

And we’re going to highlight five of those here in just a minute. Rick, in the resource space, precious metals seemed to dominate the conversation. But I’d like to get your thought on base metals and in particular, the outlook for copper.

Rick Rule:

I think the two easiest things to think about is that the driver for copper is the ascent of humankind to the extent that there are almost eight billion people on earth and more people every day. And to the extent that humankind has a responsibility, I believe, to take the poorest half of humanity and increase their wellbeing, that automatically comes to copper.

Rick Rule:

Many readers may not know that 1.2 billion people on earth have no access to electricity. And another 2 billion people on earth have access to intermittent or unaffordable electricity. We’ve done a great job as humankind the last 30 years in increasing the material a lot of the poorest of the poor. But we have a lot more to do, and an important transition from a subsistence lifestyle to a more fulfilling lifestyle, at least part of the material translation is electricity, and electricity is copper.

Rick Rule:

At the same time that we need to continue to increase access to electricity for the poorest half of humanity, the other half of humanity wants to increase their electrical consumption too electric vehicles, power, gadgets, all those types of things. All requires copper. While this happens, in other words, while demand for copper is inexorably higher and where the rate of increase is probably increasing, we have under-invested as an industry in copper exploration production for 30 or 35 years.

Rick Rule:

The truth is most of the world’s great copper mines are a bit like me. They’re old, they’re past their prime. Bingham Canyon has been producing for 120 years. Chuquicamata has been producing for 105 years. Grasberg has producing for my whole lifetime, which is to say 69 years. You don’t stand at the top of a pit, throw in fertilizer and water and have it grow more copper. That’s not the way it works.

Source: https://wikitravel.org/en/Chuquicamata

Rick Rule:

So five years from now, what you see is that these old behemoths become longer and longer and longer of tooth. While as a consequence of three decades of under investment and exploration production, there’s nothing to take their place. And if there is something to take their place, increasingly, there are political and economic roadblocks put in front of them. There’s a wonderful copper deposit here in the United States called Resolution that the world’s been talking about for 20 years. And it’s probably 10 years away from permitting and production, not in time to make any difference in a supply outlook.

Rick Rule:

So, to the extent that one is able to make a copper discovery, the appetite among the major copper producers to buy these projects, to replace the old behemoths, which are long of tooth. And the incredible interest that governments and consumers have about increasing the material wellbeing of their citizens, which is a fancy way of saying increasing demand for copper, means that an intelligently constructed copper exploration royalty development program, I say intelligently crafted. Part of the problem in the last 30 years has been that not only haven’t we invested enough money, we’ve invested most of the money that we’ve invested stupidly.

Rick Rule:

So we’ve been both unwitting and unscrupulous in the mining business with regards to copper. But the result of that is that successful efforts in the copper business pay absolutely tremendous rewards and will continue to, I think. Most people in the west when they think about copper, they think about Tesla or something like that. And that’s fine. That’s wonderful.

Rick Rule:

I think there is going to be an increasing demand for electrification for well to do people. But the real opportunity is increasing the material living standards for the bottom half of humanity. We have an obligation to do it. We’ve done a good job of it over the last three decades, it’s going to continue. And the driver is going to be copper.

David Cole:

Maurice, I’ll point out if you don’t mind that Dr. Richard Schodde is our consulting and advisor on the mineral economic side out of Australia, MinEx Consulting. He believes that conservatively, the planet will consume as much copper in the forthcoming 20 to 25 years as has been consumed by humanity throughout all the history cumulatively.

David Cole:

And when you think about that with respect to the under-capitalized situation in the copper industry, it’s very, very dynamic situation. It’s very difficult not to be extraordinarily bullish copper. And Rick mentioned that Bingham Canyon Mine, one of the largest open pit mines in the world is where open pit mining was first invented. The globe currently consumes the entire endowment of that deposit annually. So it’s an interesting situation for the copper business.

Maurice Jackson:

Sticking with copper, Mr. Cole, let’s visit the EMX property banking, and get acquainted with some of your royalties beginning in Chile at the Caserones Mine where EMX recently increased its position there. Tell us about the royalty and why the increase.

David Cole:

So well, first of all, as said, we’re very bullish copper, have always believed in having a diversified portfolio and copper has been a key component to that. Scott Close who heads our investor relations team, likes to call Caserones, Casherones. This is a very long live asset. Officially, it’s a 17-year-mine life, but as geologists, we’ve looked at it. We see 25-plus years of production here just from the existing deposit as it is open ended at depth, and copper cutoff grades have a long history of decreasing over time because of these various factors that we’re pointing out.

David Cole:

So this is a very long lived assets. It’s like having a 30-year bond that pays in pounds of copper. And we do see a little bit of upside with respect to production coming from that, but we’re very bullish copper prices. And we did have the opportunity to buy at a fair valuation, a 0.4% royalty on that deposit. And then the opportunity came along for us to augment that as additional family members who owned this royalty wanted to sell and liquidate.

“We have under-invested as an industry in copper exploration production for 30 or 35 years”. ~ Rick Rule

David Cole:

And so we had the chance to increase that, and we did it as that next bite was larger than we could afford by ourselves. We brought in Franco-Nevada as a partner, and we have a huge amount of respect for Franco-Nevada. They’re the leader in the mining royalty space. And if you would’ve asked me who’s the best company to be a strategic investor in EMX, I would’ve said Franco-Nevada.

David Cole:

Very happy to get them across the line and become a shareholder in EMX, part and parcel to us taking that further bite and increasing our exposure to Caserones. And that’s not our only copper exposure in the world. Of course, we have a royalty on the Timok Project, which is one of the largest ongoing copper-gold discoveries on the planet.

Maurice Jackson:

Why would Franco Nevada the biggest, most successful company in the mineral royalty sector want shares in EMX?

David Cole:

Yeah, everybody asks me this question and Maurice, please feel free to ask them. And the answer to the question, I know the answer. And it comes back to what we were talking about earlier, and that’s our hedgehog and that’s our organic growth strategy, so our royalty generation work. That’s what separates us from the crowd. And that’s why we’re the only junior or mid-tier royalty company that Franco Nevada has ever bought stock in and hold stock in currently.

“I think there is going to be an increasing demand for electrification for well to do people. But the real opportunity is increasing the material living standards for the bottom half of humanity. We have an obligation to do it. We’ve done a good job of it over the last three decades, it’s going to continue. And the driver is going to be copper”. ~ Rick Rule

David Cole:

And we’re delighted to have them on board. They’ve been giving us accolades for the royalty generation work for many years. We know these folks well from our history. I used to work with some of them at Newmont Mining Corporation, and they would come up to me. David Harquail once said, “Dave, we believe that your royalty generation work is topnotch and hats off to you for doing that.”

David Cole:

And ultimately, it was that that carried him across the line and got them to invest in the company. But ironically, it was associated with a royalty purchase. But Franco Nevada recognized the power and the integration of buying royalties as well as growing them organically to build your portfolio.

Maurice:

All right, I’ve thrown you some softballs here. Here’s a tough one. EMX has recently deployed a substantial amount of capital lately acquiring cash flowing and/or soon to be cash flowing royalties and taking on debt to do so. Does this really make sense in the long-term health of the company? I mean, is this really in the best interest of the shareholders?

David Cole:

Absolutely, absolutely. So, our calculated risk adjusted internal rate of return on the monies that we’ve invested into purchasing these portfolio of royalties vastly exceeds the cost of that capital. And speaking of cost of capital, one of the important goals here is to populate the top of the pyramid, increasing our cash flow, and enabling us to move across that border from a junior company to a mid-tier company with strong cash flows, which will significantly reduce our cost of capital as we able to form a relationship with major senior banks. And we’re in those discussions now.

David Cole:

So this is all part of our strategy to prudently grow our portfolio. And particularly in an inflationary environment, paying a 7% coupon rate to borrow some money to buy things that have double digit internal rates of return is smart business.

Maurice:

Rick, as a shareholder, how significant is it when you see Franco-Nevada paying a premium to own a 3.5% stake in EMX?

Rick Rule:

I like good partners. I’ve been a Franco-Nevada shareholder on and off because of course they disappeared for a while since 1982, and I hold them in very high regard. Dave has done a good job, I think, of attracting other sophisticated shareholders in EMX.

Rick Rule:

But certainly, I’m attracted to EMX as a shareholder. What price they paid is really a matter of their own concern, the fact that they paid a premium. I think if you look at the nature of the royalty transaction, the premium was explained.

“That’s what separates us from the crowd. And that’s why we’re the only junior or mid-tier royalty company that Franco Nevada has ever bought stock in and hold stock in currently“. ~ David Cole

Rick Rule:

But the truth is that in Franco-Nevada, EMX has a partner that should they have an opportunity that is time sensitive and attractive, they have a partner that could stroke a $250 million check or a $350 million check overnight without blinking an eye. And a partner that has the sophistication and the courage to be able to do that, that’s what’s important.

Maurice:

Rick, we just highlighted copper. What is your outlook on the opportunity before us in nickel?

Rick Rule:

Well, nickel, you could also say is also an electric metal. It’s in tighter supply than copper. Most of the marginal nickel production that we’ve seen in the world in the last 30 years is lateritic nickel, which is nickel that occurs in tropical environments, often Indonesia and the Philippines. And the production of lateritic nickel is extremely environmentally degrading and also extremely energy intensive. So you need to break down nickel between lateritic nickel and primary sulfide deposits.

Rick Rule:

Primary nickel sulfide deposits are very rare and extraordinarily valuable. A primary nickel mine, even at today’s nickel, makes an awful lot of money. In the very near term, the nickel price looks inexorably higher because the world’s most important nickel producer is Russia. The political difficulties between Russia and the rest of the world, including the fact that because Russia has been kicked out of the SWIFT banking systems means that even if they sell nickel, they can’t get paid for it in any currency that they can spend.

Rick Rule:

But looking beyond that, the uses of nickel in batteries, in stainless steel, in metallurgical applications, nickel is tied very, very directly like copper to the ascent of humankind. But primary nickel deposits are even rarer than high-quality primary copper deposits.

Maurice Jackson:

David, about two weeks ago, EMX announced that it had made a strategic investment in privately held Premium Nickel Resources, which holds a trio of defunct nickel, copper and cobalt mines in Botswana of all places. Now, this seems to be a big deviation from the EMX business model. What’s going on there?

David Cole:

Well, it’s actually a key part of our business model to make strategic investments. And so it’s quite synergistic with our royalty generation work. We’ve got smart economic challenges around the world, identifying properties to acquire. And occasionally, they come across an opportunity to invest in a company where we cannot, not buy the stock.

David Cole:

And you may recall the investment that we had in Russia of all places, that we liquidated at a substantial profit. That was a strategic investment in an ongoing copper and gold development story. We did exceedingly well on and happy to have our money out of Russia back in 2018 and have not gone back, I’ll point out.

David Cole:

But that’s an example of us making strategic investments. Our track record over a nearly 20-year pathway here has been quite good. We’ve netted out over 50 million USD from our strategic investments. And we’ve had a couple bumps on the chin. We’re comfortable with taking risk and the wins have far outweighed the losses.

David Cole:

This is our next major strategic investment, absolutely delighted for the very reasons that Rick pointed out to have that nickel exposure. And we think that the premium nickel asset in Botswana is going to be in the top five nickel sulfide systems on the planet. We’re very bullish about that opportunity.

Maurice Jackson:

Multimillion dollar question here, can you provide us with an update on the situation with Zijin Mining in Serbia at the giant Timok copper-gold mine?

David Cole:

Everybody wants to know the answer to that. Of course, I can selectively disclose information, but I can say that we are in negotiations with Zijin. They’ve been quite professional and communicative to work with, and I’m confident that we’ll come to a mutual agreement.

Maurice Jackson:

All right. The Balya silver-lead-zinc mine in Turkey, it’s been ramping up for a while now. What’s the latest there?

David Cole:

So the exploration results have been phenomenal. The deposit continues to grow. They’ve decided that they will build a second mill, which we’re delighted that will substantially enhance our cash flow long-term. And they are entering into commercial production now. I expect the first royalty check to come in within the next couple of months, actually. And I do expect production to ramp up from multiple underground headings over the course of the next five years. Five years from now, it’s going to be a substantial annual royalty for us.

Maurice Jackson:

Can you give us an update on the Gediktepe gold oxide and polymetallic mine? And when will this royalty start cash flowing?

David Cole:

That one’s also just a couple months away, Maurice. And so that’s an interesting royalty in that the royalty on the upper oxide zone, which is gold and silver enriched, is 10%. That was part of the sales price when the predecessor to SSR sold that on to the current operator, Lidya, and that 10% kicks in after 10,000 ounces have been poured. And we’re right at 4,000 ounces right now. They are in production, they’re placing ore on the pad. They did have a tough winter season, so that slowed them down a little bit, but they’re only a few weeks behind.

David Cole:

And we’re seeing greater in production as they head into summer. As soon as they cross the 10,000th ounce, which will be just a few months out, probably June or July, then we’ll start to receive royalty payments on that, and that is a 10% royalty. And that’s on the upper oxide zone, which we believe will have about a five-year mine life. And then it goes into the polymetallic sulfide zone, which is dominated by zinc and copper, two commodities we love. And that’s a 2% royalty in perpetuity on that zone.

David Cole:

So that’s another key asset within the portfolio that starts to cash flow in a few months.

Maurice Jackson:

Now that 10% is just remarkable. With all the new royalty cash flow and pending royalties poised to begin paying, what will the cash flow look like for EMX for the remainder of 2022?

David Cole:

Yep. So we will be coming out with guidance in two quarters, and we’re diligently working on that. And our bankers are talking to us about that. And that’s part of our shelf filing that we’re also in the process of, and this is all part of our maturing from a junior company that’s been building a portfolio to a mid-tier company with strong cash flows. And so, as soon as we provide that guidance, Maurice, you’ll be one of the first to know.

Maurice Jackson:

Right, looking forward to it. Leaving the property bank, Rick, I know you have a very stringent, selective criteria for companies that make the grade, if you will, before you will commit your capital. Now, we just heard Mr. Cole referenced that EMX has five attractive royalties and more on the way along with an attractive share price, in my opinion.

Maurice Jackson:

That all sounds compelling, but you taught me years ago that the competitive advantage for a shareholder is found in the board of directors, management, and technical team. Why are the people equally, if not more, important to you as a shareholder than the given project, and specifically the team that comprises EMX royalty?

Rick Rule:

Bad people can screw up good rocks. If the wrong team controls the cash flow, they get it and the shareholders don’t, simple as that. The second thing of course, is that luck favors the trained observer. And you need luck in exploration. Dave has done a great job over 20 years. He’s a geologist himself, but I would say his true talent is hiring and motivating and keeping very good geologists.

Rick Rule:

So, what has always attracted me to EMX has been the technical IQ per dollar of market cap. The fact that although the team has done a decent job of buying royalties, what I think the real secret sauce is the fact that they have generated royalties by generating 300 exploration concepts that other people have bought into. It can take a decade for prospect generation to work for you. But prospect generation, in my own portfolio, has been by far the most capital efficient exploration speculation that I have done. What the EMX team did is they figured out a better payments mechanism.

Rick Rule:

For most of my life, I invested in teams that had great intellectual capital that generated projects, and they ended up getting a carried interest in the project. The problem with that is that they sometimes didn’t have the ability to carry the load as the project went into production. And well, they had a lot of exploration expertise, they maybe didn’t have construction or development expertise.

Rick Rule:

What David did is he really simplified the way they got paid. Rather than get paid in the ability to own on a subsidized basis, a minority interested in operation that they may not know how to operate, he developed a circumstance where they got paid a carried interest by way of a royalty, which is ultimately a safer and probably a more valuable instrument.

Rick Rule:

The same intellectual capital that he has hired and deploys in the exploration business can be used to both source and evaluate either merchant banking opportunities, which is to say those companies that he invests in strategically or royalties. So I think it’s important that the exploration IQ that has been assembled within EMX turns out to be a strategic advantage in moving their asset base forward.

Maurice Jackson:

Now, Rick, we’ve heard you convey the merits of owning mineral royalties, and we’ve heard the virtues that EMX royalty presents to the market. Before we close, what did I forget to ask?

Rick Rule:

Well, I think, the important question to ask any company that’s beginning to mature is how are the capital allocation decisions made. What would be as, an example, the capital cost assumptions around the debt that they took on and what sort of pro forma delta would occur between cost of capital to return on capital employed? How strategically will the decision be made internally as to whether to emphasize the merchant banking business, the royalty generation business, or the royalty acquisition business?

Rick Rule:

And then finally, I think, the royalty acquisition business is extremely competitive. I would ask Dave to describe the competitive advantage that he may feel against the 30-some odd other players in the mineral royalty space.

Maurice Jackson:

All right, Mr. Cole. So, you know what’s up for our next interview.

David Cole:

It boils down to our alpha, which is on the technical side. And we believe that astute business decisions are rooted in solid technical understanding. And we’ve always had a strong technical team here at EMX to drive those business decisions so that we can have that astute allocation of capital.

Maurice Jackson:

Last question for you, Rick, tell us about the Rule Symposium, which will be held this year at the beautiful Boca Raton Resort in Boca Raton, Florida, July 26th through the 29th.

*CLICK HERE TO REGISTER*

Rick Rule:

And I thought you’d never ask, Maurice. As both of you know, or all of you, frankly, to have put on natural resource investing conferences, the majority of those, the live ones took place in Vancouver, BC. A couple years ago because of COVID, we had to discontinue that one for a while. And we’d like to bring it back to BC, but the truth is with the COVID circumstance and public health administrations and two countries doing their level best to thwart my franchise, we decided to bring the conference down to the United States because most of the attendees are, in fact, American.

Rick Rule:

We searched around the country for a resort that was of the same quality that we expected, and one that had the facilities that we needed. And we found one in Boca Raton. The Boca Resort has a long and fabled history. It’s just undergone a spectacular renovation. They put hundreds of millions of dollars in it. They’re renting rooms to our attendees for $295 a night. Their rack rate is about a thousand, truly spectacular location.

Rick Rule:

The conference itself has a long and storied history. We’ve always had great speakers. We have Jim Rickards, Danielle DiMartino Booth, Doug Casey, the normal sort of gurus. But what’s always made our conference set apart is really two things. One, we have always had what I call the living legends, which is to say, we’ve always had the speakers, people who have built multi-billion dollar businesses in natural resources from scratch. It isn’t all gurus. There’s a lot of jockeys there and they are great jockeys. We’ll have that this year.

Rick Rule:

In addition to that, every exhibitor at our conference is owned either in Sprott managed accounts or in my own account. That doesn’t mean sadly that every stock I own goes up. What it does mean is that my attendees can rest assure that every exhibitor has been vetted. We know them well enough that we in fact, own them.

Rick Rule:

The important part of a live conference is that you get to see the interaction between the exhibitors and the speakers. I remember four years ago, I guess in Vancouver, following at a discreet different distance, Robert Friedland, one of the best resource entrepreneurs in history. And I watched him walk around the exhibit hall. I watched him speak to exhibitors. I took note of which exhibitors he talked to and which exhibitors made him smile and which exhibitors made him frown. I think the opportunity to follow Robert Friedland on a resource stock shopping trip is worth the price of admission.

Rick Rule:

By the way, with regards to the price of admission, every investment product, every investment education product that Rule Investment Media has ever offered over the last 30 years has come with a complete money back guarantee. If you come to the conference, you pay the tuition, and you don’t think it was worth your money? Email me. I’ll give you your money back.

Maurice:

One important factor that maybe you forgot to highlight there is the intellectual capital that you get from other investors. And the lifelong relationships that I’ve had an opportunity to forge has just been, I can’t put a price tag on that.

Rick Rule:

Oh, that’s a very good point. There’s going to be 500 high net worth investors there. And the idea that all the IQ in the room flows from the dais to the room is stupid. Watching fellow investors, listening to the questions that they ask the exhibitors, listening to the questions and the conversations they have amongst each other, listening to the conversations in the workshop, absolutely invaluable. And as I say, if you aren’t prepared to make money on it, there’s a money back guarantee.

Maurice:

Now I know the next question everyone has is how do I register? We’ve got that taken care of for you CLICK HERE. Check the description box below. Also, just visit www.provenandprobable.com. And the link will be on the right side of our homepage just below the weekly precious metal special through Miles Franklin Precious Metals Investments. Mr. Cole, before we close, what would you like to say to shareholders?

David Cole:

Buy the depths, yeah. As Rick likes to say, you want to use the cycles to your advantage rather than be used by the cycles.

Maurice:

Mr. Cole, for someone that wants to learn more about EMX royalty, please share the website address.

David Cole:

www.emxroyalty.com, Maurice.

Maurice:

Gentlemen, it’s been a pleasure speaking with you today. Wishing you both the absolute best.

David Cole:

Wishing you the best.

Rick Rule:

Thank you.

Categories
Energy Exclusive Interviews Gold Shore Resources Junior Mining

Goldshore Resources – Creating the Next Tier One Asset in Ontario

Creating
the next
Tier One Asset
in Ontario, Canada

Original Source: https://www.streetwisereports.com/article/2022/04/28/gold-shore-resources-creating-a-new-asset-in-ontario.html?m_t=2022_04_28_11_54_13

Joining us for a conversation is Brett Richards the CEO of 

Goldshore Resources Inc.

(GSHR:TSX – GSHRF:OTC – 8X00:FSE)

$0.53

2022/4/29 18:13:59

Volume: 178,258
Market Cap: 61.19m
PE Ratio: 2.70
Year High: $0.98
Year Low: $0.39
Shares Out: 115,458,038
Float: 132,943,270
Institute Hold’gs:
0.40% (as of 03/31/22)
Institutions Bought Prev 3 Mo: 0

Goldshore Resources Inc. (GSHR:TSX; GSHRF:OTC; 8X00:FSE). Mr. Richards, it’s a pleasure to be speaking with you today, to have you introduce us to Goldshore Resources, which is focused on creating the next Tier One Asset in Ontario, Canada.

Before we deep dive into company specifics, Mr. Richards, please introduce us to Goldshore Resources, and the exciting opportunity the company presents to the shareholders. 

Thanks Maurice. Goldshore Resources was founded in January 2021 with the acquisition of the Moss Lake Project from 

Wesdome Gold Mines Ltd.

(WDO:TSX)

$13.11  +0.38%

2022/4/29 18:13:59

Volume: 449,376
Market Cap: 1.87b
PE Ratio: 13.90
Year High: $16.77
Year Low: $8.90
Shares Out: 142,419,793
Float: 142,500,000
Institute Hold’gs:
65.60% (as of 03/31/22)
Institutions Bought Prev 3 Mo: 2,483,412

Streetwise Reports Articles

04/28/2022 – View Article

See More Live DataWesdome Gold Mines Ltd. (WDO:TSX) for $52M in cash and shares. Subsequent to that, we raised $25M and then received approval from the TSXV, and we were admitted for trading on June 4, 2021.  Since that time, we have been focused on a comprehensive exploration approach to the asset commencing with a VTEM geophysical survey, which will guide (is guiding) a 100,000m drill program.  Currently, we are about 20% of the way through the programand we expect to complete the program in 2022.  During this period, we will conduct extensive metallurgical test work, prepare the project from an ESG standpoint for a feasibility study, and prepare the project for the next phase of development drilling.  After which (Q1 2023) we will update the resource estimation and prepare a new preliminary economic analysis (“PEA”) – (end of Q1 2023). These are the steps we are taking to create the next Tier One Asset in Ontario, Canada.  

Let’s find out more!  Mr. Richards, please acquaint us with your flagship Moss Lake Property beginning with your location and some of your neighbors in the region.

We are apx. 120 km west of Thunder Bay, Ontario on the Trans-Canada highway.  We have the flagship Moss Lake Gold project as our core focus, but in 2014 and 2015, Wesdome acquired additional lands adjacent to the Moss Lake Gold project that included Coldstream, North Coldstream, and Iris Lake to the northeast; and Hamlin Lake to the south-west.  We have a c.4m oz historical resource, estimated by Moss Lake in 2013, and had a historical PEA done in 2013 that input parameters were updated by Wesdome in 2020. The Moss Lake Property has a rich history of gold and silver production dating back to the early 1900s.

 Tell us more.

The area has been explored by prospectors for a long time, literally over 100 years.  The region of the Shebandowan Greenstone belt is a fairly complex region geologically and structurally, but the Moss Lake Project is in an area contained within intermediate to felsic volcaniclastic rocks of the northeast-trending, fault-bounded central intermediate to felsic metavolcanic belt, is vertical to steeply southeast dipping and possibly overturned. Two northeast-trending regional fault structures cross the property from northeast to southwest.  We have a domain boundary area at Moss Lake that is a sheer zone style of deposit hosted with diorite intrusions with high resistors and high chargeabilitybordered with domains of high conductors (magnetite and iron), which to the north-east and south-west are very different styles of deposit and host copper-gold-silver, and to the northeast, those elements along with lead-zinc-molybdenum and in North Coldstream, cobalt. The North Coldstream mine actually produced a copper-gold concentrate for many years in the 1940s through the 1960s, before being closed and decommissioned in 1982 due to the low copper price.

I am curious is the infrastructure still intact?

There is no infrastructure still intact at North Coldstream, as it has been decommissionedbut one day, I will look forward to mining the high-grade area of historic tailings that have been decommissioned.  But when we speak of infrastructure, there is substantial infrastructure to build a district-scale mining camp at Moss Lake.

Why do I say that? Because our land package is quite extensive and touches on the Trans-Canada highwayHighway 11 (the longest street in the worldYonge Street). With that access, we have: very inexpensive / high-capacity electric grid power; natural gas; 4 lane highway; both CN and CP Rail lines within 1 km., with a rail spur near our site; access to people / contractors / consultants and a skilled workforce in Thunder Bay, and an international airport within 120 km of our site. These are all literally on our doorstep, which makes building a large-scale mining camp in the area, extremely doable.

Let’s fast forward to 2020 when I understand a robust PEA was completed. Can you walk us through the numbers? 

Yesno problem. The 2013 PEA that was updated by Wesdome in 2020 has a number of caveats to the framework of becoming a Tier One Asset, but what we need to do is increase the size of the resource to closer to 10M oz.

The raw numbers are:

  • 128M tonnes is the mineable resource.
  • 3M oz Au gets pulled in the life of mine (“LOM”) plan [mineable pit shell(s)].
  • 45M Au is the output for a 10-year LOM, o.
  • 245K oz Au production per year for 10 years.
  • Pre-production CapEx is CA$542M.
  • Cash costs are apx. CA$926 / oz.
  • 5% discount rate.
  • You will note the recoveries are quite low at 80% in the Mian Zone and 85% in the QES Zone, and we look to increase these to mid 90%+ recoveries, which will go straight to the net present value (“NPV”) of the project.

Before we go on-site, can you share some of the key economic outputs for Moss Lake Property?

Well, the economic outputs are quite staggering in my view. The post-tax NPV of the project at the base case gold price used ($1,546) was $334M, and when sensitized up to today’s trading rangeit is anywhere from $691M to $1.1Band that is our starting point before we add any ounces to the project.

Companies at our stage of development trade at 0.3X NPV, and that puts us at an estimated share price trading range from $1.53 ($1,800 Au) to $2.59 ($2,200 Au), and today we are trading at $0.50so it is easy to see why I am excited about this project, and it is very easy to see the value creation that we can deliver on as we take steps to make this a Tier One Asset.

When we look at trading comparables on a like-for-like basis with respect to the style of deposit, jurisdiction, stage of development, etc., we are trading at a fraction of the mean of our peer group on a market cap to per ounce basis, and again, this is our starting point.  So also again, you can easily see the room for share price appreciation throughout the remainder of this year and as we head towards a resource estimation update and new PEA.  

Let’s get some boots on the ground and visit the Moss Lake Property where the company is currently undergoing a massive 100,000 Meter Drill Program.

Beginning with geophysical airborne analysis what can you share with us? What was the VTEM able to determine?

The VTEM survey ended up being an invaluable part of our analysis of this project.  Geotech and TechnoImaging did an amazing job of not only putting this together, but also putting the interpretation together for us to better identify high-probability drill targets in not just Moss Lake, but also in the northeast Coldstream area, and the south-west Hamlin Lake area. We now have 29 brand new targets that are very compelling when you look at layering: historical exploration work; historical drill data; historical production data (at North Coldstream) and then align the VTEM model with our current drilling plansit is very compelling.

Mr. Richards, I’m going to turn the controls over to you to give us an underground view of the Moss Lake Property, and have you share with us what has Market excited about the opportunity before us.

The 3D interactive model can be found on our website at this location:  Technical Analysis: Goldshore’s VTEM Results Greatly Expand the Prospectivity (goldshoreresources.com)

The 3D model is contained within the VTEM interpretation press release, which describes everything going on over the entire property.

I must admit, there is an awful lot to unpack here, but if you take away nothing else from the VTEM interpretation, I want to leave people with this: This is our Moss Lake deposit that was used for the historical PEAit contains 3.0M oz Au input, and is modeled in 3-dimensional view.

That same geophysical signature is found in 11 different areas along the strike of Moss Lake, over a distance of 12 km.  The existing resource above has a strike length of 2.5km long, the projected resource can be extrapolated over a 12km strike.  This area along the 12km strike also has known mineralization from historic drilling (all fairly similar to the Moss Lake resource)which compounds the certainty of positive drill results when we get to drilling it.

This is incredibly meaningful, and illustrates the tremendous potential Moss Lake has (irrespective of the additional potential of Coldstream and Hamlin Lake) of becoming not only a Tier One Asset but resource growth way beyond this theoretical barrier the major mining companies claim as their starting point; which is 10M oz. Au eq.

Before we leave the Moss Lake Property, multilayered question, what is the next unanswered question for Goldshore Resources, when can we expect a response, what determines success, and what can we expect as far as news flow?

I think the questions I get asked the most are: “just how big can Moss Lake be?”, and “why has no one else explored this project or this region?”, and “what makes Goldshore so special to do this?”

I appreciate there are a lot of armchair cynics looking at (and understanding how) the Shebandowan Greenstone Belt can be a district-scale mining camp like Red Lake, Timmins, or Abitibi. However, many things have changed over the past 10 years to allow for these low-grade / bulk tonnage deposits to shine technically and economically.

Detour Lake (Kirkland Lakenow Agnico Eagle) is a great example of how to take a project like this through stages of development / resource growth / production capacity phases of expansion, to becoming a generational sized / scaled mine. We are trying to follow that path, in as methodical a way as possible, in the essence of creating and maximizing shareholder value.

What has changed?

Primarily the gold price, and the trading range that now binds the gold price between $1,800 and $2,200 / oz for the foreseeable future. This not only allows for the low grade / bulk tonnage deposits to shine, but because they are so geared economically to the gold pricewhen the gold price runsthe NPV of these styles of projects goes up hundreds of millions of dollars, with every $100 increase in the gold price.

So, our focus has always been treating this as a real projectde-risking the project geologically, metallurgically, environmentally, socially, and trying to put our collective experience of building mines to work, thinking forward about project nuances down the road, and addressing them now.

So just how big can Moss Lake be?

I don’t knowbut what I do know is that we can visibly see a path to 10M oz and becoming a Tier One Asset.

Leaving the project site, let’s discuss some important topics germane to the projects . . . Is the Moss Lake Property 100% owned or do they have earn-in options? 

Moss Lake property is 100% owned by Moss Lake Project Inc., which is 100% owned by Goldshore Resources. We own 100% of the project and Wesdome is a 22% shareholder in Goldshore Resources.

Are you fully permitted?

We are permitted to conduct the exploration activities for the next period / stage of development, but these are provincial permits required for land disturbances (water usage / trail building / road building, etc.) and other small permits as well.

There will however be a comprehensive permitting exercise down the road when this goes from feasibility study to financing / construction decision.

Is the ultimate goal for Goldshore Resources to build a mine or arbitrage? 

The ultimate goal for Goldshore Resources is to build as large an economic resource as possible, and frame that resource into a viable / credible project through the PEA process. Where Goldshore takes it after this stage, is still to be definedhowever, myself and Pete Flindell (VP Exploration) have built 3 mines together in our career; and several members of our Board and Advisory Board have also built mines and run single or multi-operation mining companies over their careers. So, we are well-positioned to take this in any direction where we think we will maximize the return for our shareholders.

I have always said that partnering with a mid-tier or major mining company that has the financial / technical / project / operating experience in these types of deposits is going to maximize the value for our shareholders (and provide a liquidity event) and that may well be the case. However, nothing is certain in this world, and we have to prepare the company for all possible outcomes.

We’ve discussed the good, let’s address the bad. What can go wrong and what are your actions plan to mitigate that wrong? 

In mining, anything and everything can go wrongand it usually does.  Mining companies are classic for over-promising and under-delivering, and we are taking a conservative approach to deliver on promises and deliver on targets.

There are however a lot of challenges that delay the delivery of these targets (covid / supply chain disruptions / labor shortages etc.) but ultimately, we need to mitigate the risk of not executing in whatever / whichever way we need to do that. We need to executeand we need to deliver!

I don’t see a large degree of traditional geological / metallurgical / other technical risk in the Moss Lake project, and with its extensive infrastructure availability, it is a large mine “waiting to be built.” However, getting through the necessary steps and stages has proven to be challenging due to the delays as listed aboveand these factors continue to be delays in the steps and stages. My job is to keep the market close to all of this and to ensure that we are mitigating the risk(s) as much as possible over these next months of critical development for the Goldshore story.

Switching gears . . . Let’s discuss the people responsible for increasing shareholder value. Mr. Richards, please introduce us to your Board of Directors and Management Team, and what skill sets do they bring to Goldshore Resources?

Yesthe Board and Board Advisory Team is comprised of first-rate peoplefirst and foremost. These individuals bring a breadth of experience in capital markets, corporate governance, and corporate finance, and everyone has played a role in their careers in building large mining enterprises in some cases from small micro-cap starting points; to exponential multiples of first investment.

To highlight one individual and not name them all would be an injustice to the group, as they are all tremendous individuals with complementary and aggregated skill sets. I feel Goldshore might have the strongest Board and Advisory Board of any junior mining company in Canada today.

Who is Brett Richards and what makes him qualified for the task at hand?

Brett Richardswell, after 36 years in the mining and metals space, I have learned that you are never too old to learn new things, and just when you think you have figured it outyou realize there is more to learn.  It is why I surround myself with exceptional people who are over-achievers in their own right.  I can lead peoplebut one person cannot make a great companyexceptional teams make exceptional companies.

I have been fortunate enough to work for some great organizations and some of which I have cofounded.  Since the 1980sthose companies have included:  Co-Steel Inc., Kinross Gold, Katanga Mining, Avocet plc, Roxgold, Midnight Sun Mining, Octéa, African Thunder Platinum, and Richards Enterprises Inc. Most recently, and prior to coming to Goldshore, I worked for private equity clients such as Pala Investments, Gramercy, Genii, BNF, and the Carlyle Group.

I have a background in mechanical engineering, mineral economics, and a master’s in business administration-management engineering.  However, the more important stuff is that I am a purveyor, collector, and drinker of fine red wine, and also an avid sports enthusiast.

How about boots on the ground, who do you have on your technical team? 

Well, the key to the technical competency of the organization starts with our VP, ExplorationPete Flindell.  Pete and I have worked together on probably 10+ projects over the past 15+ years and he is a world-renowned senior geologist with experience in apx. 50 countries on every habitable continent.

Pete is a collaborative teacherwho loves to build teams; train teams; share ideas and experiences and those who have worked with Pete and under his direction, praise his geological leadership.

We have a team of about 5 senior geologists, 12 junior geologists, 12 geo techs, and about 30 drillers. Again, to mention one would do the rest of the team not mentioned an injustice, as we have built a great team of people on the ground.

Let’s get into some numbers . . . Mr. Richards, please provide the capital structure for Goldshore Resources, current shares outstanding. 

Surehere are the following high-level numbers:

  • 135M shares outstanding.
  • 5M shares out fully diluted.
  • $20M in the treasury.

Since we are covering numbers, how does Goldshore Resources compare with some of your peers?

As mentioned in the previous valuation discussion, we trade at a significant discount to our peers.  As illustrated on the chart below, we are trading at $14/ounce today and the median of our peer group is around $40/ ounce.

How many cash and cash equivalents do you have? 

CA$20M.

How much debt do you have? 

CA$0.

What is your burn rate? 

CA$2M per month (+/-).

What percentage of ownership does management have and who are the major shareholders? 

  • Management holds – 12%.
  • Wesdome – 22%.
  • Resources Fund (Europe) – 3%.
  • Brett Richards – 3%.
  • Galen McNamara – 3%.

What is the float? 

  • 135M shares outstanding.
  • 5M shares out fully diluted.
  • However, the free float is about $80M shares (as of April 19, 2022).

Are there any redundant assets on the books that we should know about?

No.

Are there any change in control fees, if yes, what is the compensation? 

Nohowever, Wesdome has ROFR rights on a change of control.

Is management charging a consultant fee for any services?

No.

In closing . . . Sir, what keeps you up at night that we don’t know about? 

In 2021, it was the pandemic and the impact it has had on the health (personal and mental health) of our employees and contractorsand now with that subsiding, I think the various macro-drivers of gold price (which present global crises and global instability):  Russia/Ukraine crisis; hyper-inflation; the US and global economic policiesbasically the headline of every newspaper is what keeps most of up at night. The world order feels like it is changing, and with that comes a lot of uncertainty about the future and that of our kids’ and grandkids’ future.   

Last question what did I forget to ask? (This is an actual question; the floor is yours) 

I think you have covered everythingbut one final note to those looking at buying Goldshore Resources: “Why do you want to buy gold?  Why do you want to buy gold equity?  What moves the needle in gold equities and separates them from other gold equities? The answers to all of these questions are better served by holding Goldshore Resources than holding any other junior gold equity in the capital markets.  

Safety, security, a hedge against inflation, a hedge against various global economic uncertainty, size, scale, resource potential, visibility to production . . . Goldshore Resources’ potential and its “Quest to 10M oz of Gold” will deliver the best result to all of those questions.

Please visit our website at https://goldshoreresources.com/

Mr. Richards, it’s been a pleasure speaking with you today, wishing you Gold Shore Resources the absolute best sir.

My pleasure.

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1) Maurice Jackson: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Goldshore Resources Inc. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Goldshore Resources Inc. 

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